UK battery startup Britishvolt Ltd. is in talks to be rescued for £32 million ($39 million), 95% less than its valuation just last year.
(Bloomberg) — UK battery startup Britishvolt Ltd. is in talks to be rescued for £32 million ($39 million), 95% less than its valuation just last year.
The deal, organized by a consortium led by Dealab Group LLC, needs the support of 75% of shareholders in a vote that’s due on Friday, according to a person familiar with the matter who asked not to be named because the transaction is private. A funding round in February last year valued Britishvolt at more than £774 million.
Britishvolt was touted as a key part of the UK’s drive to build an electric-vehicle industry, before it was forced to seek short-term bridge funding late last year to stave off collapse. Finding enough cash to build the £2.6 billion plant was a struggle for the startup with automotive customers more keen to sign cooperation agreements rather than firm orders.
Britishvolt said on Monday it’s in discussions with a consortium of investors to sell a majority stake to secure long-term funding. The battery company is still waiting for £100 million of UK government funding, announced in January 2022, from its Automotive Transformation Fund.
The company’s investors include mining giant Glencore Plc, which was among the lenders that provided emergency funding.
The new investor would initially provide the battery-maker with £30 million, and then another £128 million during this year, according to the FT.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.